visual business modeling | service design drinks berlin

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1 Visual Business Modeling Some Fun with Alex’ Osterwalders BMC | Service Design Drinks Berlin, 03.09.2012

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How about arming yourself with new tools for the next project? Many have stumbled upon the Business Model Canvas, yet only a few of you use it as part of their standard repertoire. Together with Jan Schmiedgen a ‘Service Design Drinks’ session tried to change that. Jan is a co-founder of Global Waste Ideas and wrote his Master’s thesis on ‘The Interrelations of Business Model Innovation, Service Design Thinking and the Production of Meaning’. He gave a short introduction to the canvas and led a hands-on session. This is his slide deck …

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Page 1: Visual Business Modeling | Service Design Drinks Berlin

1

VERSION1.0Visual Business ModelingSome Fun with Alex’ Osterwalders BMC | Service Design Drinks Berlin, 03.09.2012

Page 2: Visual Business Modeling | Service Design Drinks Berlin

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Image Credits / Sources in order of appearance: Casadesus-Masanell, R., & Ricart, J. E. (2011). How to Design A Winning Business Model. Harvard Business Review, 89(1/2), 100–107. // Porter, M. E. (1996). What is Strategy? Harvard Business Review, (November - December). // Ouden, E. den. (2011). Innovation Design: Creating Value for People, Organizations and Society (1st ed.). Springer London. // Fjeldstad, Ø. D., & Stabell, C. B. (1998). Configuring Value for Competitive Advantage: On Chains, Shops, and Networks. Strategic Management Journal,, Vol 19, 413–437. // valuenetworksandcollaboration.com, 2011 // Tom Hulme (http://weijiblog.com/

startup-tools/) // Patrick Stähler (http://blog.business-model-innovation.com/tools/) // Johnson, M. W., Christensen, C. M., & Kagermann, H. (2008). Reinventing Your Business Model. Harvard Business Review, 86(12), 50–59. // Fraunhofer IAO (http://moby.iao.fraunhofer.de/)

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Choices & Consequences Activity Networks Value Flow Mapping for Ecosystems

Value Configuration Perspective: Chains/Shops/Networks Tom Hulmes Canvas (IDEO) Patrick Stählers Canvas (Fluidmind)

etc.Other »Scientific Conceptualisations« Fraunhofer IAO Canvas

Page 3: Visual Business Modeling | Service Design Drinks Berlin

3Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Osterwalders Business Model Canvas: The Building Blocks

Page 4: Visual Business Modeling | Service Design Drinks Berlin

Customer Segments

4Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Which customers do we serve?What are the jobs they need to get done?

Page 5: Visual Business Modeling | Service Design Drinks Berlin

Value Proposition

5Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Tip: Use the Value Proposition-

Designer!

What do we offer them? Which »problem« do wereally solve? What value do we really provide?

Page 6: Visual Business Modeling | Service Design Drinks Berlin

Channels

6Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

How can we best reach/serve each customer segment?What are the best interaction/touch points?

Page 7: Visual Business Modeling | Service Design Drinks Berlin

Relationships

7Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

What relations shall we establish with our customer segments?Personal? Automated? Acquisitive? Retentive?

Page 8: Visual Business Modeling | Service Design Drinks Berlin

Relationships

7Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

What relations shall we establish with our customer segments?Personal? Automated? Acquisitive? Retentive?

Customer InterfaceOffering

Page 9: Visual Business Modeling | Service Design Drinks Berlin

images by JAM

Revenue Streams

8Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

What are our customers really willing to pay for? How? Transactional or recurring revenues?

Page 10: Visual Business Modeling | Service Design Drinks Berlin

images by JAM

Key Resources

9Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Which resources and assets are critical to successfully run our business?

Page 11: Visual Business Modeling | Service Design Drinks Berlin

images by JAM

Key Activities

10Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

What essential key activities do we have to perform to deliver our value proposition?

Page 12: Visual Business Modeling | Service Design Drinks Berlin

images by JAM

Key Partners

11Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Who are critical partners and suppliers leveraging our business model?With whom do we co-create value?

Page 13: Visual Business Modeling | Service Design Drinks Berlin

images by JAM

Key Partners

11Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Who are critical partners and suppliers leveraging our business model?With whom do we co-create value?

Infrastructure

Page 14: Visual Business Modeling | Service Design Drinks Berlin

12Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Cost Structure

What is our resulting cost structure?Which key elements drive costs?

Page 15: Visual Business Modeling | Service Design Drinks Berlin

12Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Cost Structure

What is our resulting cost structure?Which key elements drive costs?

Finance

Page 16: Visual Business Modeling | Service Design Drinks Berlin

13Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Key Partners

Key Activities

Value Proposition Relationships

Channels

Revenue Streams

Key Resources

CostStructure

Customer Segments

Page 17: Visual Business Modeling | Service Design Drinks Berlin

14Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Key Partners

Key Activities

Value Proposition Relationships

Channels

Revenue Streams

Key Resources

CostStructure

Customer Segments

Starting Points: Resource-Driven

Page 18: Visual Business Modeling | Service Design Drinks Berlin

15Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Key Partners

Key Activities

Value Proposition Relationships

Channels

Revenue Streams

Key Resources

CostStructure

Customer Segments

Starting Points: Offer-Driven

Page 19: Visual Business Modeling | Service Design Drinks Berlin

16Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Key Partners

Key Activities

Value Proposition Relationships

Channels

Revenue Streams

Key Resources

CostStructure

Customer Segments

Starting Points: Customer-Driven

Page 20: Visual Business Modeling | Service Design Drinks Berlin

17Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Key Partners

Key Activities

Value Proposition Relationships

Channels

Revenue Streams

Key Resources

CostStructure

Customer Segments

Starting Points: Finance-Driven

Page 21: Visual Business Modeling | Service Design Drinks Berlin

18Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Key Partners

Key Activities

Value Proposition Relationships

Channels

Revenue Streams

Key Resources

CostStructure

Customer Segments

Starting Points: Multiple-Epicenter-Driven

Page 22: Visual Business Modeling | Service Design Drinks Berlin

19Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Key Partners

Key Activities

Value Proposition Relationships

Channels

Revenue Streams

Key Resources

CostStructure

Customer Segments

Page 23: Visual Business Modeling | Service Design Drinks Berlin

19Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Key Partners

Key Activities

Value Proposition Relationships

Channels

Revenue Streams

Key Resources

CostStructure

Customer Segments

Eliminate/Reduce

CostsCreate/RaiseValue

Page 24: Visual Business Modeling | Service Design Drinks Berlin

19Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Key Partners

Key Activities

Value Proposition Relationships

Channels

Revenue Streams

Key Resources

CostStructure

Customer Segments

Eliminate/Reduce

CostsCreate/RaiseValue

BestSustainable Equilibrium

max. value capture for

the companymax. value for the user

Page 25: Visual Business Modeling | Service Design Drinks Berlin

Key Partners

Key Activities

Value Proposition Relationships

Channels

Revenue Streams

Key Resources

CostStructure

Customer Segments

Mov

ies

Hard

Disk

Dolby

5.1

DVD

Conn

ectiv

itiy

Price CPU

GPU

Mot

ion C

ontro

l

User

Rea

ch

Gam

es

Ux /

Fun

Fact

or

Ecos

yste

m

Valu

e Le

vel &

Pric

e

Nintendo Wii Microsoft Xbox 360 Sony PS3

Eliminate/Reduce

CostsCreate/RaiseValue

20

Video Gaming Strategy Canvas: Nintendo Wii (in 2007)

Page 26: Visual Business Modeling | Service Design Drinks Berlin

KP KA VPVP CR CSKP

KR

VPVP

CH

CS

CSCSCS RSRSRS

eliminate reduce create raise unchangedNintendo Wii (in 2007)

Page 27: Visual Business Modeling | Service Design Drinks Berlin

KP KA VPVP CR CSKP

KR

VPVP

CH

CS

CSCSCS RSRSRS

male »hardcore gamers«

passive immersion with high-end

performance and graphics

new proprietary technology

state-of-the-art chip development

console subsidies

eliminate reduce create raise unchangedNintendo Wii (in 2007)

Page 28: Visual Business Modeling | Service Design Drinks Berlin

KP KA VPVP CR CSKP

KR

VPVP

CH

CS

CSCSCS RSRSRS

male »hardcore gamers«

passive immersion with high-end

performance and graphics

new proprietary technology

state-of-the-art chip development

console subsidies

royalties from game developers

game developers

retail distribution

game developers

eliminate reduce create raise unchangedNintendo Wii (in 2007)

Page 29: Visual Business Modeling | Service Design Drinks Berlin

KP KA VPVP CR CSKP

KR

VPVP

CH

CS

CSCSCS RSRSRS

male »hardcore gamers«

passive immersion with high-end

performance and graphics

new proprietary technology

state-of-the-art chip development

console subsidies

technology development

costs console production

costs

royalties from game developers

game developers

retail distribution

game developers

eliminate reduce create raise unchangedNintendo Wii (in 2007)

Page 30: Visual Business Modeling | Service Design Drinks Berlin

KP KA VPVP CR CSKP

KR

VPVP

CH

CS

CSCSCS RSRSRS

male »hardcore gamers«

passive immersion with high-end

performance and graphics

STMicro-

electronics for

MEMS

accelerometers

new proprietary technology

state-of-the-art chip development

console subsidies

technology development

costs console production

costs

royalties from game developers

casual gamers

game developers

familiesgirlsretail

distributiongame

developers

eliminate reduce create raise unchangedNintendo Wii (in 2007)

motion control

technology

alternative game concept

research

motion controlled gaming

physical activity, social get-together

sport, workout,

physical recovery fun factor, social experience » family

Page 31: Visual Business Modeling | Service Design Drinks Berlin

KP KA VPVP CR CSKP

KR

VPVP

CH

CS

CSCSCS RSRSRS

male »hardcore gamers«

passive immersion with high-end

performance and graphics

STMicro-

electronics for

MEMS

accelerometers

new proprietary technology

state-of-the-art chip development

console subsidies

technology development

costs console production

costs

royalties from game developers

hardware sales profit

casual gamers

game developers

familiesgirlsretail

distributiongame

developers

standard component hardware

manufacturers

eliminate reduce create raise unchangedNintendo Wii (in 2007)

motion control

technology

alternative game concept

research

motion controlled gaming

retail store involvement

physical activity, social get-together

sport, workout,

physical recovery fun factor, social experience » family

Page 32: Visual Business Modeling | Service Design Drinks Berlin

KP KA VPVP CR CSKP

KR

VPVP

CH

CS

CSCSCS RSRSRS

male »hardcore gamers«

passive immersion with high-end

performance and graphics

STMicro-

electronics for

MEMS

accelerometers

new proprietary technology

state-of-the-art chip development

console subsidies

technology development

costs console production

costs

royalties from game developers

hardware sales profit

casual gamers

game developers

familiesgirlsretail

distributiongame

developers

standard component hardware

manufacturers

eliminate reduce create raise unchangedNintendo Wii (in 2007)

motion control

technology

alternative game concept

research

motion controlled gaming

retail store involvement

physical activity, social get-together

sport, workout,

physical recovery fun factor, social experience » family

Feasibility Viability

Desirability

BestSustainable Equilibrium

Page 33: Visual Business Modeling | Service Design Drinks Berlin

22Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Key Partners

Key Activities

Value Proposition Relationships

Channels

Revenue Streams

Key Resources

CostStructure

Customer Segments

Page 34: Visual Business Modeling | Service Design Drinks Berlin

22Image Credit: JAM Visual Thinking, Amsterdam (http://www.jam-site.nl)

Key Partners

Key Activities

Value Proposition Relationships

Channels

Revenue Streams

Key Resources

CostStructure

Customer Segments

10:00MINUTES

Page 35: Visual Business Modeling | Service Design Drinks Berlin

What I haven’t told you

23

Page 36: Visual Business Modeling | Service Design Drinks Berlin

Want to know more? Join the Business Model Generation!

24

businessmodelgeneration.com/book businessmodelyou.com

Page 37: Visual Business Modeling | Service Design Drinks Berlin

Alexander Osterwalder: http://www.businessmodelalchemist.comPatrick Stähler: http://blog.business-model-innovation.com

Steve Blank: http://steveblank.com

Doblin Group: http://news.doblin.comInnosight: http://www.innosight.com

BusinessModelsInc: http://www.businessmodelsinc.com

DesignWorks @ Rotman: http://bit.ly/TYRLhGIllinois Institute of Design: http://www.id.iit.edu/news

… and start following these Guys and Organisations!

25

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Design-driven strategic business planning

26Jan Schmiedgen // Zwiestädter Straße 7 // 12055 Berlin // +49 173 3 83 15 26 // [email protected]

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Backup: Some Examples of well known Business Models

27

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Image Credit: © 2011 Business Models Inc. (www.businessmodelsinc.com) www.businessmodelgeneration.com

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29Image Credit: © 2008 XPLANE (www.xplane.com) & Alexander Osterwalder (www.alexosterwalder.com)

Page 42: Visual Business Modeling | Service Design Drinks Berlin

30Image Credit: © 2008 XPLANE (www.xplane.com) & Alexander Osterwalder (www.alexosterwalder.com)

Page 43: Visual Business Modeling | Service Design Drinks Berlin

Image Credit: © 2011 Business Models Inc. (www.businessmodelsinc.com) www.businessmodelgeneration.com

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Image Credit: © 2011 Business Models Inc. (www.businessmodelsinc.com) www.businessmodelgeneration.com